Options-based ETFs sell future upside to pay income today. That trade has a legitimate role in decumulation portfolios and in range-bound markets. It is a poor substitute for bonds or equities over a full cycle, and the high-payout end of the category is short-volatility exposure wearing an equity wrapper.
Options-income ETFs are a legitimate tool sold as a different one. They turn future upside into cash today, which suits decumulation and sideways markets. They do not replace bonds, which offer contractual income at 5%, or equities, whose right tail is where long-run returns come from. The higher the headline payout, the more the product resembles a short-volatility trade, and the more the investor's own capital is funding the distribution.
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